dlf ipl 2008
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And Then What Started Was A………
LALIT KUMAR MODI
With IPL We Aim To Nurture And Build Local Talent
A WIN WIN SITUATION FOR ALL
Opportunity to display their skills
Engagement of people with no cricket background
StrengthsFast- paced and exciting.Appealed as a Mass Sport &
Spectator SportEconomists maximized revenue.The more unified the sport, the more
successful it is. Broadcast timing.
WeaknessT20 could damage the game that
generated it.Stakes were too high. Over priced vs reasonably priced
Opportunities Large potential mass audience. Using franchise for larger fan-base
and TV revenues.Fixed franchise fees till 2017-18.Corporate hospitality, season tickets
and TV pay-per-viewMerchandisingYouth as a long-term fan-base
ThreatsFree AgencyExpected Return on Investment Franchises are expensive. Revenue should be a long-term
IPL MARKETING STRATEGY
Auctioning Broadcasting Rights
Auctioning Franchisees Rights
Official Umpire’s Sponsorships
Tickets Sale (20% allocated to IPL)
Auctioning Players Team Owners selling tickets personally
Cheerleaders Closing and Opening Ceremony
But….. Was the Indian Premier
League only about Cricket… Let’s check it out…
Not just Cricket…
Not just Entertainment…
TARGET MARKETYoungistanCricket loversBollywood lovers
IPL INCOME DISTRIBUTION
Share of broadcasting money with franchisees.
Share of sponsorship money with franchisees.
Share of ticket money with franchisees.
Prize money distribution
IPL EXPENSESFRANCHISEE FEE: Different amount ranging from US$67 million to US$112 million payable over a period of 10 years.
PLAYER ACQUISITION COST: Determined from the auction; franchisee obliged to pay the players even if they’re not playing.
STADIUM HIRE CHARGES: Franchisee pay the local association for the use of stadium.
MARKETING COSTS: Each franchisee is expected to incur a marketing cost of US$3-4 million for team promotion
Other expenses like administration and event management.
REVENUE TELEVISION RIGHTS: Out of the proceeds from global broadcast
rights, 20% went to IPL, 8% was given as prize money and 72% was distributed to the franchisees.
SPONSORSHIP RIGHTS: IPL predicted to bring BCCI approx. US$1.6 billion. 40% went to IPL itself, 54% to franchises and 6% as prize money.
LOCAL SPONSORSHIPS: Team sponsorship revenues GATE RECEIPTS: Major source of revenue. 20% of tickets allotted to
IPL. MEDIA: UFO Moviez had theatre rights. Live telecast on YouTube.
BROADCASTS AND SPONSORSHIPS
Official Sponsors: Paid US$ 50 millions for 5 years
Television Rights: Sold for 10 years at INR 8700 crores (US$1.94 billion)
Sponsorship deal worth US$22.5 million
Sponsorship deal for 2 years at US$12.5 million
Sponsorship deal for at US$26.5 million
TV Advertisers (INR 7bn)
Central Sponsors (INR 1.7bn)
BCCI (Organizer)Sony – WSG(Broadcaster)
Team Owner/ Franchises
Ticket sales (Rs1bn)Team Sponsors (Rs1.3bn)Merchandise (Rs300m)Program tie-ups/EventsIn-stadia ads (Rs400m)Prize money (Rs270m)
Umpire salaries (Rs60mn)
Share of• Broadcasting fee• IPL Sponsorship
Prize money (Rs270mn)
Player Salaries (Rs2.1bn)Stadium Leasing (Rs280mn)Team Advertising (Rs570m)Admin Costs (Rs720m)
REVENUE – EXPENSE MODEL
IPL BUZZ ACROSS THE GLOBE
Viewership in 2008
For every 10 seconds ad
`INR 350 croresExpected BCCI
Post IPL Set Max market share
Brands advertised on TV
`INR 650 croresSony’s advertising revenue during
`INR 10 croresChampions’ prize
`INR 645 croresGovernment body declares gross income
`INR 51 croresProfi